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Commercial Rates

Hi

I am mainly working in domestic gardens, but I am about to offer a garden maintenance service to a property company that have a large amount of residential let’s in my area. 

  1. Is it normal to charge a higher rate for this type of client? Probably, I will have to wait longer for invoice settlement and things like that, and possibly more admin.

Any advice welcome

Thanks

Ian

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Replies

  • PRO

    Personally I found property rental businesses are not willing to pay the rates I charge domestic customers. 

    Only ever had one quote accepted and I've a feeling they were desperate. 

    • PRO

      .....because at the end of the day you are still dealing with Residentsl clients .....

      • PRO

        Indeed, and the middle man wants to take his cut too

        • PRO

          If the Resi agent belongs to MARLA or ARLA they are very restricted about how they can charge and make their money.

          There has been a move for them to become more transparent in providing managed services.

          Dont forget also, that as a business you have a duty to do due diligence to anyone you ‘extend’ credit to. Such as only dealing with legit Agents,  basic credit checks and keeping ear to the ground......

  • PRO

    Think of a price then double it to cover the 3 month wait to get paid! Estate agents are a pain and not worth the trouble imo

    • PRO

      Prompt or late payers if the work fits in you are entitled to charge a premium rate as a commercial business such as a property company will always recoup its costs from its own customers . 

       

  • I tend to think that if you've regular work from them, does it really matter if they're late payers?................. you'll still be getting a regular supply of the same payments coming in just like it would be if they were setling instantly except in this case, they'll always be the ones from a couple of months back.

    • PRO

      Disagrees if you put an invoice in it needs paying on your terms not theirs! If the want a loan they should go to a bank!

      in practice I’ve quite a few what could be classed as “slow payers” however the rates are “loaded” for this reason

      • You're a hard man lol!!    Agree your effectively "loaning" them a smallish sum but does that really matter? If you'd stuck that money in the bank and got interest on it, you might get an extra tenner for the year if you're lucky.  I find the "commercial" work is very profitable so don't really consider this worth worrying about as you  always get the money in the end. 

         

        • PRO

          In practice I’m about the same as you. Just annoyed this week as still not been paid for February from a certain client! I gave the manager the “I’m not your bank “ lecture.

          it will get paid in the end.

          also it does mean I still get paid in January for sitting at home:)

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